is now 
The new tax law package has some good news for families who are seeking tax relief for education expenses.
The American Opportunity Tax Credit, a refundable tax credit for undergraduate college expenses, has been expanded for another 5 years to 2017. This credit provides up to $2,500 on the first $4,000 of qualified education expenses.
Coverdell
Education Savings Accounts (aka Education IRAs) have been made permanent and now
allow higher contribution limits of $2,000 a year. Money in these accounts grows tax-free and is
tax-free when withdrawn if used for eligible education expenses. You can make 2012 contributions through April 15, 2013.
The Lifetime Learning Credit is available for anyone who is taking a college course. It allows a nonrefundable tax credit on eligible expenses even if you are only taking one class. Parents or the student may be able to claim up to $2,000 of qualified expenses. There is no limit on the number of years the credit can be claimed.
